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Severance Pay Calculator

Professional Updated 2026.08.30

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About this skill

What It Addresses

When a termination happens, users often need to answer practical questions: whether the company's reason holds, whether notice was given, how an oral termination is evidenced, how the wage base is calculated, and how N, N+1, and 2N differ. The skill turns these questions into a concrete calculation workflow instead of mixing economic compensation, payment in lieu of notice, and damages for unlawful termination.

How It Works

It first confirms the termination context: oral or written notice, stated reason, whether 30 days' advance notice was given, tenure, and the average monthly wage over the last 12 months. It then maps the likely path: lawful termination may involve N or N+1; unlawful termination may involve 2N; negotiated termination is framed around a defensible floor and negotiation target.

Key calculations include:
- N by years of service, with six months or more counted as one year and under six months counted as 0.5;
- +1 where advance notice was not given;
- 2N if the employer cannot substantiate the termination reason;
- monthly wage based on average monetary income before termination, including bonuses and allowances, with local 3x average-wage and 12-year caps checked;
- a summary of possible annual leave, unpaid wages, and overtime items, plus negotiation points and an arbitration checklist.

Boundaries

The skill does not replace a lawyer and does not constitute formal legal advice. Signed settlement agreements, weak evidence, arbitration deadlines, voluntary resignation, non-renewal at contract expiry, and retirement-related terminations need separate evaluation. Users should preserve written termination reasons, communication records, and pay slips, and verify key deadlines before signing any documents.

Use Cases

  • After an oral termination notice, assess legality and estimate N, N+1, or 2N amounts.
  • Before signing a settlement, calculate the wage base plus annual leave or unpaid wages.
  • When preparing arbitration, organize evidence, application points, and deadline checks.
  • If termination reasons are vague, analyze the risk that the employer cannot prove lawfulness.

Best For

  • Employee terminated orally without written notice, needing unlawful-termination risk and payout scope assessment
  • Employee facing a settlement signature, needing minimum payout and negotiation floor calculation
  • Worker preparing arbitration, needing evidence assessment and filing materials
  • Employee needing HR negotiation support to reconcile N, N+1, and 2N claims